Juan Baez, director of Bali Express Services, spoke at the North American Development Bank’s 2024 summit in San Antonio. He explained that switching freight trucks to green technology is currently costly, but it is a worthwhile effort. Bali Express, based in San Diego, operates 357 diesel trucks, 32 natural gas trucks, and three electric trucks.
Juan Baez mentioned that each electric truck costs nearly half a million dollars, making it a huge investment. He pointed out that the main issue with these trucks is their limited range, which is only between 120 and 220 miles. Despite the high cost, he emphasized that improving air quality for border communities is crucial. Baez stressed the need to take action and think about the future and the younger generations.
The NADBank’s annual summit brought together federal, state, and local officials, as well as business groups, academics, financial institutions, investors, project developers, and experts from the U.S. and Mexico.
Held on Thursday and Friday, the 2024 summit focused on “Innovation for Sustainability in the U.S.-Mexico Border Region.”
On Thursday, the “Creative Proposals for Sustainable Mobility” panel featured Juan Baez, Jefferson Smith, CEO of EVerged, and Gilberto Ramirez, director of strategic planning at Volvo Group Mexico.
Diana Avalos Morales, the general director of the Mexican Association of Electric Vehicles, moderated the panel. She emphasized that the trucking sector needs to focus on decarbonizing.
Avalos noted that in Mexico, cargo transport is responsible for 25% of carbon emissions, and this figure is continually rising.
In April, Bali Express Services made history by using a Class 8 electric truck to transport freight between the U.S. and Mexico. This was the first time a heavy-duty electric truck crossed the border.
The truck carried goods into Mexico through the Otay Mesa Port of Entry, linking Southern California with Tijuana.
Baez explained that although electric trucks are more expensive than diesel trucks, shippers are not willing to pay higher rates to cover their operating costs.
He talked about how customers don’t want to pay extra. Next year, the company will work on convincing people that this is the right direction.
Baez mentioned another challenge: their business involves cross-border shipments with multiple trucks.
He explained that the raw materials are picked up from the Port of Long Beach and delivered to maquiladoras in Tijuana to assemble TVs and build trailers.
Bali Express Services uses three different trucks to make these deliveries
Baez explained that their operation requires three different trucks: one electric vehicle to transport the container from the Long Beach terminal to their yard, one compressed natural gas truck to move it from Long Beach to San Diego, and another electric vehicle for the border crossing.
He brought up that Bali Express Services uses three trucks and three drivers, which makes the operation more expensive. They are spending more money but still charging the same rates. That’s the challenge the company is facing right now.
Carriers in Mexico face additional challenges with California’s Advanced Clean Fleets rule, which may start affecting trucks crossing the border into the U.S. in 2025. This rule requires fleet owners to retire internal combustion engine vehicles once they reach the end of their useful life as outlined in the regulation.
The California mandate will impact trucks crossing from Mexico into the U.S.
Ramirez mentioned that Volvo Group aims to have all its commercial vehicles to be fossil-free by 2040.
Volvo, based in Sweden, operates 12 brands in 190 markets. The company has production facilities in 18 countries and makes cars, trucks, buses, construction equipment, and marine and industrial engines.
Volvo Group Mexico has a factory in Mexico City that makes buses and another in Shippensburg, Pennsylvania, that produces construction equipment.
On August 23, the company announced plans to build a new heavy-duty truck factory in Monterrey, Mexico. Volvo Group Mexico plans to invest $700 million in this new facility.
Ramirez mentioned that Volvo currently produces over 300,000 vehicles. Those vehicles encompass buses, trucks, and construction machines, in the U.S. and Mexico. Some of these machines can carry over 100 tons and will be electric, not fossil-fuel-powered. It’s challenging, but this is basically their goal. To achieve it, Volvo has set a clear roadmap and invested in various technologies, starting with battery electric vehicles.
EVerged, a renewable energy solution provider, will launch an electric vehicle charging platform in Austin, Texas, by the end of the year, according to Smith.
Smith explained that the company is introducing the world’s most stable, vertically integrated, and cyber-secure charging platform. They also offer a range of renewable energy solutions.
Smith said their goal is to design electric vehicle chargers that appeal to a broad audience.
He explained, “We view the charger not just as a device but as a technology hub. Imagine a charger that can broadcast public safety and weather information, link to smartphones, and help users find nearby amenities. We want to create a strong following for our chargers and make the charging experience unique.”
By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.
